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Understanding Contract Sum Analysis

A contract sum analysis is prepared by a contractor as part of a tender on design and build projects. It breaks down the contractor's price into categories for the client to analyze and compare to other tenders. The analysis may then be used to calculate payments due to the contractor as the works progress.

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220 views1 page

Understanding Contract Sum Analysis

A contract sum analysis is prepared by a contractor as part of a tender on design and build projects. It breaks down the contractor's price into categories for the client to analyze and compare to other tenders. The analysis may then be used to calculate payments due to the contractor as the works progress.

Uploaded by

asmr1970
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Contract sum analysis

A contract sum analysis is generally prepared by a contractor as part of their tender on design and build projects. It
breaks down the contractor's price into a form allowing the client to analyse it and to compare it to other tenders, and
may then be used as a basis for calculating payments due to the contractor as the works progress.

A contract sum analysis is necessary as there is unlikely to be a bill of quantities on a design and build project when
the contract is entered into, and so an alternative means of assessing tenders and valuing payments is necessary.

The more precisely the employer's requirements prescribe the format and break down that the contract sum
analysis should take, the easier it will be for the client to directly compare the detail of offers by different tenderers.

The contract sum analysis might be re-visited and expanded before construction commences to ensure that it still
properly reflects the nature of the project and to ensure that it is a suitable basis for payment (contractors may be
tempted to front-load the contract sum analysis so that they receive more payment at the beginning of
the construction process).

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